Debt-ridden Essar Oil on Monday concluded deal with Russia's largest oil producer Rosneft by selling 49% of stake worth $12.9 billion (Rs 83,000 crore). Following this deal, Essar Group has sold 98.26% of stake in Essar Oil.

"With the conclusion of the Essar Oil Deal, it now embarks on a new journey, further strengthening Indo-Russian economic cooperation. The deal not only attracts India’s largest FDI, it is also Russia’s single largest foreign investment made anywhere in the world," the company said while announcing the closure of the deal.

With this deal, Essar Oil eyes to reduce debt by Rs 70,000 crore.

Prashant Ruia Director, Essar, said, "We have substantially deleveraged our Group balance sheet by over Rs 70,000 crore. With the completion of our capex programme, we now look forward to a period of growth in our wider portfolio of businesses".

He also said that Essar will repay Rs 4000 crore of debt to Indian lenders.

As per the deal, Rosneft will hold a 49% stake, will allow the Russian company to increase oil refining output by 20% this year.

All-cash sale deal consists of Essar Oil's 20 million tonne refinery at Vadinar in Gujarat and 3,500 retail outlets across the country.

The sale transaction decision was announced on October 15, 2016 when Prime Minister Narendra Modi met Russia's Vladimir Putin in BRICS Summit held in Goa.